1. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Life insurance has a two year contestable period after which it is extremely difficult for life insurance policies to be contested. Even during the first two years, the insurance company can only deny coverage for material misstatements (information that was withheld from, or misstated on, the application that is serious enough that it would have caused the policy to be altered or denied). 

    Other things that might cause a life insurance policy to be contested are questions as to whether the policy was in force at the time of death, or death as the result of suspicious circumstances (e.g.suspected suicide in the first two years, or murder of the insured by a beneficiary).

    Most life insurance policies will never be contested because death will occur after the two year period. For those that are contested, very few ever result in the death benefit not being paid.
    Answered on May 5, 2013
  2. 3485 POINTS
    J Scott BurkePRO
    President, Newbury Inc., Evansville, Indiana
    Yes, there is a two year contestable period on life insurance policies. If death occurs during this time, the insurance company will review medical records closely before paying the claim. Some simplified issue companies have a history of not paying claims on a high percent of contestable claims. 

    A small number of companies actually release to the public the percent of contestable claims that they paid last year. As you would expect, those companies pay the highest % of them.
    Answered on May 6, 2013
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